6 February 2020USA analysis

ProSight and eMaxx offer captive services to AAA-affiliated roadside assistance providers

ProSight Specialty Insurance is partnering up with eMaxx Assurance Group of Companies, a provider of insurance program administration, risk management and technology, to offer captive risk solutions to emergency roadside assistance providers affiliated with AAA.

Zekia Sweet-Washington, manager of insurance services at AAA, said its providers face an increasingly difficult insurance environment, with fewer carriers able to provide appropriately-priced coverage. AAA believes a captive can help solve this problem.

“The combination of eMaxx risk management technologies, ProSight’s expertise, and the meaningful risk assumption by participants in the captive programs will help solve this issue by delivering solutions which will provide greater control of their total cost of risk over the long run,” said Sweet-Washington

The partnership sees ProSight provide captive solutions, including excess reinsurance protection, claims service and credit and collateral management, for the member-owned captive. Services are offered through eCaptiv Insurance, a Vermont domiciled captive insurance company sponsored by eMaxx. The service has been built specifically for AAA preferred service providers, improving their ability to manage their specific set of risks.

Meanwhile eMaxx provides technology platforms that providers use to positively influence driver behavior, such as Telematics Exchange, which integrates telematics data from multiple service providers, and eLive Connect, an online learning program. Providers that participate in the captive programs are required to use such risk management tools, as well as forward and rear facing cameras for unloading and loading.

Timothy Kolojay, president of eCaptiv, said he had observed “a dramatic reduction in frequency and significant impact in the severity of claims outcomes when companies assume risk in a captive and utilise risk management technologies.”

Kolojay added: “ProSight’s focus on underwriting profitability through loss prevention and claims management, along with the technology programs built by eMaxx, will be key components that will be beneficial to emergency roadside assistance providers.”

Bob Bailey, chief underwriting and risk officer at ProSight, said the captive’s members “are taking active steps to control and participate in their own risk management and mitigation.”